When the Wall Street Journal reported that Goldman Sachs purchased of a portfolio of non-performing loans from Fannie Mae, it wasn’t the first time. No, this has been an ongoing process in which Goldman has made purchases of severely delinquent home loans from the government-sponsored agency.
Since 2015, the big bank has been placing some betting money on the table so to speak: as much as $9.6 billion in the way of buying Fannie Mae loans.
With this recent purchase of three of the four non-performing loan pools, totaling $1.43 billion in unpaid principal balance, this may be a very positive signal for the real estate industry overall.
The Journal believes that, “Goldman is trying to make money even as it looks to fulfill terms of a government settlement that calls for it to help struggling homeowners.”
“The bank’s immediate goal is to get credit for the settlement, though the longer-term goal is to make money over time, the people said. That can happen by the firm collecting mortgage payments if it gets borrowers back on track, or by selling the loans once the borrowers are up-to-date again.”
But the timing for this investment points to something larger: it is most likely that the Goldman number crunchers see the signs of a new bull market, but this time it will come in the form of real estate appreciation.
Goldman isn’t the only Wall Street firm dipping its toe back into the water: Neuberger Berman via PRMF Acquisition acquired three pools of NPLs from Fannie Mae it purchased 4,721 loans with an aggregate unpaid principal balance of $759,860,824.
In this latest sale, PRMF Acquisition acquired 1,551 NPLs with an aggregate unpaid principal balance of $234,057,619.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.com, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.